|
Latest information-
Secretary Donovan said that
important changes, which the National Association of Realtors®
has been calling for, will help consumers purchase a home. “We
all want
to enable FHA consumers to access the home buyer tax credit funds when
they close on their home loans so that the cash can be used as a
downpayment,” Donovan said. According to Donovan, the FHA’s
approved
lenders will be permitted to “monetize” the tax credit
through short-term bridge loans. This will allow
eligible home buyers to access the funds immediately at the closing
table.
_____________________________________________________________________________
Why
is now the time to buy? Here are the details for first time buyers who
buy this year, 2009. Why is now the time to buy?
- There
are signs of a recovery happening
- This
a tax credit, NOT, a deduction. You will receive a direct reduction in
taxes owed of 10% of the purchase price.
- Prices are at their lowest levels but
are NOT anticipated to stay that
way
Call me before you miss the boat and start kicking yourself. Now is the
time to buy at the low!
This chart that breaks down the differences between the Original Tax
Credit as enacted in the Housing and Economic Recovery Act of 2008 and
the Revised Tax Credit as enacted in the American Recovery and
Reinvestment Act of 2009.
Courtesy of Shawn Huss and Amy Karhoff at National City Bank:
| FEATURE |
Original
Tax Credit (2008)
|
Revised
Tax Credit (2009) |
| Amount |
10% of purchase price,
up to a maximum of $7,500 |
10% of purchase price,
up to a maximum of $8,000
|
Dates
of Eligibility
|
Purchases occurring
4/1/08 - 12/31/08* *previously through 7/1/09
|
Purchases occurring
1/1/09 - 12/31/09
|
| First-Time
Homebuyer Requirement |
Buyers may NOT have
owned a principal residence in the 3 years preceding the purchase
|
Buyers may NOT have
owned a principal residence in the 3 years preceding the purchase
|
Income
Limits
|
Full Credit available to
individuals with an adjusted gross income (AGI) of no more than $75,000
($150,000 on a joint return). Credit phases out for AGIs up to $20,000
above those caps |
Full credit available to
individuals with an AGI of no more than $75,000 ($150,000 on a joint
return). Credit phases out for AGIs up to $20,000 above those caps |
Eligible
Property Types
|
Any single family
residence that will be used as a primary residence. Includes
condos, co-ops, and townhomes.
|
Any single family
residence that will be used as a primary residence. Includes
condos, co-ops, and townhomes.
|
| Repayment |
6.67% of the credit
($500 for the full $7,500) to be paid annually over 15 years, beginning
2 years after filing.
|
None |
| Recapture |
If the home is sold
before the 15 year repayment period ends, the outstanding balance of
repayment is recaptured on sale.
|
If the home is sold
within 3 years of purchase, the entire credit is recaptured on sale
|
Bond
Financing
|
Tax Credit is NOT
allowed if the purchase is financed with state or local bond funding. |
Tax credit is allowed in
conjunction with state or local bond financing. |
You may also qualify
if you have not been in a house for three years.
Home Page
|
